HCC COMPLETES CAPITAL OFFERING
TO SUPPORT GROWTH AND ACQUISITIONS
 

HOUSTON (December 2, 2004) . . .
HCC Insurance Holdings, Inc. (NYSE symbol: HCC) announced today, that the Company had closed its sale of 3,000,000 shares of common stock in an equity offering led by Citigroup Global Markets and co-managed by Raymond James & Associates and Advest, Inc.

The net proceeds to the Company from the offering are approximately $100 million, which may be increased if the underwriters exercise their over allotment option, and will be used for general corporate purposes, including capital contributions to the Company’s insurance company subsidiaries and funding of current and future acquisitions.

Stephen L. Way, Chairman and Chief Executive Officer of HCC, commenting on the transaction said, “This equity will assist us in funding recently announced transactions that expand our Diversified Financial Products segment and provide capital for the expected growth in net written premium in our insurance companies during 2005 and beyond.” Mr. Way added, “We anticipate maintaining our record of overcoming earnings dilution from our equity offerings within the following year.”

HCC is an international insurance holding company and a leading specialty insurance group since 1974, based in Houston, Texas with offices across the USA and in Bermuda, England and Spain. HCC has assets of more than $5.5 billion, shareholders’ equity of over $1.25 billion and is rated AA (Very Strong) by Standard & Poor’s and A+ (Superior) by A.M. Best Company.

For more information, visit our website at www.hcch.com.

©2005 HCC Insurance Holdings, Inc.